Mortgage Loans Held for Sale

9 Months Ended

Sep. 30, 2023

Mortgage Loans Held for Sale and Investment [Abstract]

6. Mortgage Loans Held for Sale

Mortgage loans held for sale are recorded at fair value as set forth below:


Mortgage Loans Held for Sale	September 30, 2023		December 31, 2022
Mortgage loans held for sale – UPB	$	932	$	921
Mark-to-market adjustment(1)	(39)		(28)
Total mortgage loans held for sale	$	893	$	893

(1)The mark-to-market adjustment includes net change in unrealized gain/loss, premium on correspondent loans and fees on direct-to-consumer loans. The mark-to-market adjustment is recorded in “revenues - net gain on mortgage loans held for sale” in the condensed consolidated statements of operations.

The following table sets forth the activities of mortgage loans held for sale:


	Nine Months Ended September 30,
Mortgage Loans Held for Sale	2023		2022
Balance - beginning of period	$	893	$	4,381
Loans sold and loan payments received	(11,146)		(30,648)
Mortgage loans originated and purchased, net of fees	10,155		25,120
Repurchase of loans out of Ginnie Mae securitizations(1)	984		2,904
Net change in unrealized gain (loss) on retained loans held for sale	10		(177)
Net transfers of mortgage loans held for sale(2)	(3)		1
Balance - end of period	$	893	$	1,581

(1)The Company has the optional right to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. The majority of Ginnie Mae repurchased loans are repurchased in connection with loan modifications and loan resolution activity, with the intent to re-pool into new Ginnie Mae securitizations upon re-performance of the loan or to otherwise sell to third-party investors. Therefore, these loans are classified as held for sale.

(2)Amounts reflect transfers to other assets for loans transitioning into REO status and transfers to advances and other receivables, net, for claims made on certain government insurance mortgage loans. Transfers out are net of transfers in upon receipt of proceeds from an REO sale or claim filing.

For the nine months ended September 30, 2023 and 2022, the Company recorded a total realized gain of $42 and loss of $208 from total sales proceeds of $10,990 and $30,185, respectively, on the sale of mortgage loans held for sale.

The total UPB and fair value of mortgage loans held for sale on non-accrual status was as follows:


	September 30, 2023				December 31, 2022
Mortgage Loans Held for Sale	UPB		Fair Value		UPB		Fair Value
Non-accrual(1)	$	41	$	32	$	102	$	87

(1)Non-accrual UPB includes $32 and $90 of UPB related to Ginnie Mae repurchased loans as of September 30, 2023 and December 31, 2022, respectively.

The total UPB of mortgage loans held for sale for which the Company has begun formal foreclosure proceedings was $26 and $65 as of September 30, 2023 and December 31, 2022, respectively.